TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Becky Craig, Assistant Chief Executive Officer
SUBJECT: Risk Management Program Overview
RECOMMENDATION
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Receive a presentation on the Risk Management Program. (No Fiscal Impact)
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BACKGROUND
The County is a governmental entity exposed to a variety of risks inherent to the services provided. All risk exposure cannot be eliminated but it can be reduced through implementation of mitigation measures. County departments are the front line that assess operational risk and mitigate concerns. They are experts in their respective fields and are provided the tools to deliver services safely and effectively. The Risk Management Program supports the departments, coordinates resources, insures residual risk, and processes claims. Staff also review concerns within and across departments and in similar jurisdictions to recommend additional mitigation measures.
The County is a founding member of PRISM (Public Risk Innovation, Solutions, and Management), a member-directed risk-sharing pool. This joint powers agency provides cost-effective insurance policies, training, best practices and expertise. The County currently participates in multiple service lines and a few ancillary programs. The insurance market has been hard for many years due to continued natural disasters and excessive litigation awards within the state resulting in significant annual premium increases. The County’s claims experience is better than the collective JPA’s average and is reflected in its experience modification factors equaling less than 1.0 for general liability and workers’ compensation.
The County contracts with third-party administrators to process general liability claims (George Hills, Inc), workers’ compensation claims (Sedgwick), and vendor insurance certificate verifications (Ebix). The ability to access the vendors’ breadth of expertise is cost-effective for the limited volume of activity incurred annually. In addition, County Counsel oversees the County’s litigation program and works with several outside law firms experienced in public sector defense. The County assigns analysts to facilitate administrative tasks and employs a Risk and Safety Officer to conduct assessments and trainings.
The presentation will include aggregate claims and budget allocation information.
Requested Action: receive presentation on the Risk Management Program.
FISCAL IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.